Key Points
-
Dogecoin has plummeted by more than 90% from its 2021 record high, but that doesn’t mean it’s cheap.
-
Developers created a new application layer called DogeOS, which could become an organic source of demand for Dogecoin.
-
It might not be enough to create sustainable value over the long term, so investors who buy Dogecoin today could suffer losses.
-
Dogecoin (CRYPTO:DOGE) has spent most of 2026 trading below $0.10. It’s hovering at around $0.07 as I write this on Nov. 10, representing a decline of more than 90% from its 2021 record high of $0.73. However, the cryptocurrency’s significant decline doesn’t necessarily mean it’s cheap.
Dogecoin was created as a joke by two friends in 2013, so they didn’t put much thought into giving it an actual purpose. Practically every rally since then has been fueled by pure speculation, which simply isn’t sustainable, hence the coin’s steep decline from its all-time high.
Missed AI’s “Act 1”? Act 2 Could Be 15x Bigger. Most investors think they missed the AI boat because they didn’t buy Nvidia in 2005. But according to our analysts, we’re only at the end of “Act 1″—the R&D phase. “Act 2” is the global rollout. Continue »
But developers are working on new innovations like DogeOS, an application layer where people can build decentralized software. This could revive the ecosystem and create organic demand for Dogecoin, so should investors buy it while it’s still under $0.10?
Image source: Getty Images.
A new use-case for Dogecoin?
An asset can’t rise in value over the long term without a sustainable source of demand. If it isn’t attractive or useful to consumers, businesses, or investors, then the asset will eventually run out of buyers, and its value will collapse. That is exactly what happened to Dogecoin after 2021.
Although Dogecoin can technically be used to make payments, only 2,400 businesses around the world are willing to accept it in exchange for goods and services (according to Cryptwerk). Its extreme volatility would make cash-flow management very difficult, so it’s no surprise, but if consumers can’t spend Dogecoin at their preferred stores, they have no reason to own it.
However, the team of developers behind the MyDoge self-custodial digital wallet created DogeOS to give Dogecoin some actual utility. It’s still in the testing phase, but it will allow people to create a wide range of decentralized applications, from games to crypto exchanges to lending marketplaces, and Dogecoin will play a central role in their operation.
DogeOS is compatible with the Ethereum (CRYPTO:ETH) virtual machine, the software engine that powers Ethereum’s smart contracts. It gives DogeOS the same app-building functionality as Ethereum, which is the world’s most popular platform for developing decentralized software.
But when people use an app that was created on the DogeOS layer, they will have to use Dogecoin to pay fees instead of Ethereum’s native cryptocurrency, Ether. These fees are commonly called “gas,” and they cover the computing costs required to process actions in the given app. As a result, DogeOS could create a new source of organic demand for Dogecoin.
Dogecoin’s neverending supply might be the biggest barrier to further upside
As promising as DogeOS sounds, it won’t solve Dogecoin’s biggest problem. New coins have always been issued through a process called mining, which involves people using computers to solve complex mathematical problems for the right to validate transactions on the blockchain. It’s a critical process for maintaining a secure system of record, so validators are rewarded with payment in Dogecoin to encourage further participation.
The world’s largest cryptocurrency, Bitcoin, also relies on mining, except with one key difference. Bitcoin’s supply is capped at 21 million coins, so once all of them have been mined, no new coins will enter circulation.
Dogecoin has no such cap. Although a maximum of 5 billion coins can be mined each year, there is no end date, so its circulating supply will grow forever. In theory, this will steadily erode the value of each existing coin over time.
Buying Dogecoin below $0.10 could result in losses
There are two main reasons I think Dogecoin will continue trending lower, despite innovations like DogeOS. First, there isn’t much reason for people to use the new application layer, because they can just build decentralized software on the proven and trusted legacy Ethereum network instead.
Second, any potential value created by those who do adopt DogeOS might be erased by Dogecoin’s growing supply. Personally, I’ve never come across an asset with an unlimited supply that increased in value over the long term, and I don’t think this particular cryptocurrency will buck that trend.
There are 156.7 billion Dogecoins in circulation as I write this. If we assume 5 billion more enter circulation every year, then supply will double over the next 31 years or so, which could slash the current price of $0.07 per coin in half.
In summary, a beaten-down cryptocurrency isn’t necessarily a cheap cryptocurrency, and I think investors who buy Dogecoin today are likely to suffer losses.
Should you buy stock in Dogecoin right now?
Before you buy stock in Dogecoin, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Dogecoin wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004… if you invested $1,000 at the time of our recommendation, you’d have $341,157!* Or when Nvidia made this list on April 15, 2005… if you invested $1,000 at the time of our recommendation, you’d have $1,037,753!*
Now, it’s worth noting Stock Advisor’s total average return is 834% — a market-crushing outperformance compared to 207% for the S&P 500. Don’t miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
See the 10 stocks »
*Stock Advisor returns as of November 12, 2026.
Anthony Di Pizio has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Bitcoin and Ethereum. The Motley Fool has a disclosure policy.
